Genco to acquire ATC Technologies

The deal is expected to close during the fourth quarter of 2010.

By ·

ATC Corporation, a provider of logistics and remanufacturing services for the high-tech and automotive industries, said it has entered into a definitive agreement and plan of merger pursuant to be acquired by third-party logistics (3PL) services provider Genco Supply Chain Solutions, for $512.6 million.

Genco is a privately-owned, 6,800-employee company with more than 130 operations throughout the U.S. and Canada. It has been led by chairman and CEO Herb Shear since 1971 and provides various services, including: contract logistics, reverse logistics, product liquidation, pharmaceutical logistics, and government solutions for more than 150 customers, including manufacturers, retailers, and U.S. government agencies.

During a conference call with financial analysts, ATC president and CEO Todd Peters said this merger will provide ATC’s current customers with a broader set of solutions and the same level of operational expertise for which ATC has become known.

“We feel this agreement is a great opportunity for us, our customers, our employees, and our stockholders,” he said. “And in addition, this merger provides an opportunity for all our people to join a top-notch logistics company. [This] is a tribute to our employees’ hard work and dedication that Genco sees ATC as an attractive potential acquisition.”

ATC officials said this deal is subject to approval by holders of a majority of ATC’s outstanding common stock, receipt by Genco of the proceedings of the debt and equity financing. The transaction is expected to close during the fourth quarter of 2010. 

ATC added that under the terms of this transaction ATC and its advisors are permitted and intend to actively solicit alternative acquisition proposals from third parties until August 17. Genco has the right to match any offer ATC receives and is entitled to a breakup fee of $15 million if ATC were to accept and approve a superior proposal during the soliciting period and after the soliciting period Genco could receive $20 million if an unsolicited period is received and approved.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Article Topics

3PL · Genco ATC · Third-Party Logistics · · All Topics
Latest Whitepaper
Mobile Solutions: Improving Supply Chain Efficiencies
To meet customer's ever-increasing service expectations and improve their business efficiency, companies are looking to their supply chain operations – especially material handling and warehouse operations managers.
Download Today!
From the February 2017 Modern Materials Handling Issue
In warehouses and DCs, planning solutions tend to take a back seat to execution system functions. Vendors are working to boost the trust factor using tools that break down forecasts and blend with analytics.
Automated Storage on the Move
Receiving 101: Setting the Table for Success
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2016 Warehouse/DC Operations Webcast: Confronting omni-channel complexity
During this webcast we’ll examine the current activities, trends, and best practices in warehouse and DC operations management and how companies plan to address complex issues associate with omni-channel fulfillment.
Register Today!
EDITORS' PICKS
Johnson & Johnson: A vision for automation
J&J Vision Care brings together a variety of automated technologies, including an innovative...
Using AGVs at LEDVANCE
The lighting manufacturer reaped savings by reducing maintenance costs and product damage, and using...

System Report: Sustainable Distribution at REI
Specialty outdoor retailer REI’s new distribution center brings together the next generation of...
System Report: Whirlpool puts mobile robots to work
In Whirlpool Corp.’s Clyde, Ohio, factory, mobile robots have automated the delivery of parts to...